South Korea, US agree on changes to free trade deal
South Korea, US agree on changes to free trade deal
29 Jun 2007
Source : Reuters
By Jack Kim
SEOUL, June 29 (Reuters) — South Korea has accepted a U.S. request to add new labour and environmental provisions to a trade deal they reached in April and will sign the pact by a Saturday deadline, the prime minister said.
South Korean and U.S. negotiators held two rounds of talks in the past week on adding the provisions into what would be the biggest U.S. trade deal in 15 years, aiming to ensure it wins congressional approval.
"The U.S. proposal, reflecting its new trade policy, does not add much of a burden on our side in substantive terms," Prime Minister Han Duck-soo told a forum on Friday.
An official at Han’s office quoted him as saying he believed Seoul’s acceptance would improve the prospects for the deal in Congress.
The deal, which is supported by the majority of South Korea’s public, is likely to be approved by parliament, analysts said.
South Korea joins Peru, Colombia, Panama, all of which have trade deals in various states of play with the United States, in accepting Washington’s demands to include the provisions on environmental protection and labour standards in their pacts.
Congressional Democrats reached a deal with the White House in May that paved the way for approval of the Republican Bush administration’s free trade deals if the provisions were added.
The standards are already being enforced in South Korea and are compatible with its policy, Han was quoted as saying.
South Korea and the United States are scheduled to sign the deal on Saturday, when the White House mandate expires to negotiate trade agreements that Congress can reject but not revise.
Studies have said the deal could add $20 billion to the more than $70 billion a year trade between South Korea and the United States, boost South Korea’s economy by as much as 6 percent over the next 10 years and add 340,000 jobs.
The deal, reached in April after 10 months of negotiations, has faced stiff opposition from South Korean farmers fearful of losing heavy import protection and U.S. automakers who fear it would unleash a new wave of Korean cars in their market.
Seoul on Thursday announced a package worth more than 130 trillion won ($140 billion) through 2013 to compensate for losses to farms and fisheries. ($1=926.5 Won)
